Exclusive Motorcars
Exclusive Motorcars
Closed. Opens Monday at 9:00 AM
Closed. Opens Monday at 9:00 AM

Pay Now or Pay Later? The Pros and Cons of Making a Large Down Payment on Your Used Car

When does it make sense to pay a larger down payment amount when buying a pre-owned luxury vehicle?

Pay Now or Pay Later? The Pros and Cons of Making a Large Down Payment on Your Used Car

By Ashley Effinger

Looking to buy a car with an auto loan but not sure how much money you should put down? Here’s the short answer: As much as your wallet can comfortably afford! You see, making a larger down payment is one of the best ways to secure approval for an auto loan – even if you’ve got less-than-stellar credit. And speaking of wallets – it’ll save yours some loot by lowering interest payments in the long run too. So yeah, when it comes time to hit that ‘buy’ button on new wheels, don’t skimp out and drive away from cash savings!


On the other hand, it could put a strain on your wallet—and if you have bad credit , not all lenders will accept such a large sum as a down payment. If this sounds like an internal battle you’re facing right now, keep reading to find out more about the pros and cons of making a large down payment on your car.

Advantages Of A Large Down Payment

Slide Into Savings

Ready to get behind the wheel of your dream car ? Make a big splash (literally) with a hefty down payment! Not only will you reduce the size of your loan and lower those monthly payments, but you’ll also have financial flexibility in future years. Bottom line: making a large down payment can help put cash back in YOUR pocket and reduce money stress and financial pressure!


Check out what happens when you put large down payment down on a vehicle

Lower Interests and Reduce Negative Equity

For those with less-than-stellar credit, putting your hard-earned cash ( a down payment ) towards the purchase price of that new ride could be your saving grace. Not only does it lower those pesky interest charges you end up paying in the long run, but reducing or eliminating negative equity – owing more than your vehicle is worth) can also help keep financial woes at bay! To see how much of an impact this makes for yourself, use our free online car loan calculator because when it comes to taking out a car loan – forewarned definitely beats uniformed!

Ready to shorten your loan term and get approved, even with bad credit?

You need a hefty down payment – they’re like the key that unlocks plenty of savings on interest charges. Not only can you avoid negative equity but also make an otherwise unmanageable monthly payment more manageable! So don’t delay – build up those funds for that big ol’ down payment so you can reap all the benefits today.

Ready to get serious about that loan?

Okay, so you’re thinking about making a large down payment on your loan. You know that putting money down can feel like a huge commitment – but in the long run it is SO worth it! Not only does this show lenders how dedicated and serious you are to pay back the loan, investing some of your own cash into this purchase motivates success.

You’ll really see changes for the financial better in your car loan when you make a really large down payment, about 50%. Let’s pretend we want to finance something for $15K at 17% interest rate; take a look at these breakdowns when different amounts of money go towards the down payment:

Different sizes of down payment could really shake things up! Let’s face it – real change comes with heavy investments…and not just financially speaking. (Note: calculations in the chart above do not include tax, title, and license fees.)

The Flip Side of the Large Down Payment Coin

Sure, you can make a large down payment to purchase that shiny certified pre-owned vehicle of your dreams – but beware: it won’t do jack for lowering your interest rate . And worse yet, putting forth such an investment could mean emptying out (or compromising!) any savings accounts you have! Don’t put yourself in financial hardship for the sake of having cool wheels on the street – unless you know fully prepared financially. Before making any rash decisions, weigh in on if opting for a larger down payment is really worth it for you.

If you need a car, but don’t have the time to save up for it – never fear! Sure, committing more funds today can seem painful…but there are more upsides than downs when considering making a larger down payment. Budget wisely and reap all the riches that come with spending smarter instead of faster – because who wants another monthly bill anyway? Put your money where your mouth is (or rather in this case: on those wheels!).

How Much Down Payment Do I Need For A Vehicle With Bad Credit?

With bad credit , you don’t have to kiss your dreams of driving away in a new or used car goodbye! As long as you can cough up the minimum down payment requirement – typically $2K or 20% (but could be more or less depending on your financial situation) – auto lenders will often give ya the green light.

Why not even trade-in that old clunker for some extra cash toward meeting this amount? And keep in mind: if all else is equal, more money upfront means higher chances of approval and reduced financing costs overall – boomshakalaka ! Now that sounds like money well spent to us!

If you’re hoping to get behind the wheel of a pre-owned luxury car but have bad credit, don’t let that stand in your way! Aim high with your down payment – it’s like an investment for better terms and rates as well as more options. Sure, there may be some sacrifice on your budgeting side so use caution when crunching numbers—but planning ahead is KEY to avoiding financial hiccups later down the road.

Let’s connect on social media, we would love for you to join the conversation!